Fiscal Note
The proposed resolution amends the Parks Division 2017 Adopted Capital Budget to appropriate $250,000 of Non-General Fund General Obligation Borrowing and creating a new “Golf Course Equipment” project. The funding will be used to purchase four new mowers to replace the Golf Enterprise Fund’s mower fleet. Using General Obligation Borrowing to fund the purchase will result in lower financing costs than financing through the dealer. Estimated useful life of the equipment is 10 to 15 years; debt will be repaid with revenues from the Golf Enterprise Fund over ten years based on the cost of borrowing.
Title
SUBSTITUTE - Amending the 2017 Parks Capital Budget to create a new project “Golf Course Equipment” and appropriate $250,000 in non-General Fund general obligation borrowing that will be repaid by the Golf Enterprise Fund to purchase new mowers for the City’s golf courses, and authorizing the City to enter into an sole source agreement with Burris Equipment to purchase mowers.
Body
The Parks Division has identified the need to replace eight of its 1990’s-era mowers currently used at the four city golf courses. A new mower technology that uses seven decks with additional reels (Jacobsen LF-557 Fairways) is only available from Burris Equipment due to exclusive rights to sell. The additional decks/reels will significantly cut mowing time and should reduce labor and maintenance costs. Funding of $250,000 is needed in non-General Fund general obligation borrowing which will be repaid with revenues from the Golf Enterprise Fund over a ten-year period.
WHEREAS, the Madison Parks Division needs to replace eight mowers that date back to the 1990’s to maintain the four city golf courses; and
WHEREAS, new mowers are available from Jacobsen Mowers (Jacobsen LF-557 Fairways) that have seven mowing decks that hold reel-based cutting units and Jacobsen Mowers is the only company on the market with the seven deck technology which provides additional cutting width allowing 30% more grass to be cut with each pass; and
WHEREAS, the extra decks and reels on the Jacobsen LF-557’s will allow golf maintenance staff to reduce its mower fleet from the existing eight mowers to four mowers and still be able to reduce mowing time by about a quarter, which will reduce fuel costs; and
WHEREAS, the reduced mowing time will allow golf course maintenance staff to work on other important priorities and reduce labor costs overall; and
WHEREAS, replacing the aging fleet of current mowers will initially reduce maintenance costs and equipment down time; and
WHEREAS Burris Equipment has exclusive rights to sell the Jacobsen LF-557 Fairways in the Madison area; and
WHEREAS City Purchasing will not approve a Purchase Order for a non-competitive purchase of goods that exceeds $25,000 without Common Council approval; and
WHEREAS the Parks Division is now seeking such approval from the Council so that the purchase of four replacement mowers can occur by May 2017; and
WHEREAS, the purchase of four Jacobsen mowers will cost $250,000 but will have a lifespan of approximately 10 to 15 years, which supports borrowing and repayment over time; and
WHEREAS, authorizing $250,000 of non-General Fund general obligation borrowing will result in the lowest borrowing costs and the debt will be repaid by revenues from the Golf Enterprise Fund over a ten-year period.
NOW, THEREFORE, BE IT RESOLVED that the 2017 Parks Capital Budget is amended to include a new project titled “Golf Course Equipment” and $250,000 in non-General Fund general obligation borrowing is appropriated to purchase new mowers for the city golf courses; and
BE IT FURTHER RESOLVED, that the Mayor and City Clerk or the Designee of the Finance Director, as appropriate, are hereby authorized to execute document(s) as necessary in a form approved by the City Attorney with Burris Equipment for the purchase of four Jacobsen mowers for maintenance of the city’s golf courses. enter into a sole source agreement with Burris Equipment for the purchase of four Jacobsen mowers for maintenance of the City’s golf courses.